US crude production to fall further

Oil

The Energy Information Administration (EIA) has revised its outlook for US crude oil production downwards for the fourth month in a row in its May Short Term Energy Outlook, with production predicted to fall to 11.69M b/d in 2020, down by 2.82M b/d from its January forecast of 13.3M b/d. US refinery runs have been revised down by 500K b/d compared to its April report, declining by 1.7M b/d y-o-y to 14.86M b/d in  2020, with forecasts for 2021 also down by 340K b/d m-o-m to 16.35M b/d.

 Global oil demand is projected to fall by 8.13M b/d y-o-y in 2020 to 92.61M b/d, a decline of 2.91M b/d compared to April’s forecast.